Intelligent Finance transfer of equity example support desk enquires

• I am am in need of a conveyancing solicitor to undertake my transfer of equity. Intelligent Finance have been approached for a remortgage. I thought of asking my financial adviser. I am lead to believe he will likely get a kickback for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• I currently have a joint Intelligent Finance mortgage with my cousin and am looking into the feasibility of him taking on the whole mortgage and subtracting myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is about 175k, and the property value is in the region 600k. Is this a transfer of equity? Is stamp duty due?
• I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
• Have recently split up with my ex of thirty years. I'm now living with my mum and dad and she wants to remain in the property and pay me off. What percentage do I get. Is it 50% of the equity after redeeming the mortgage with Intelligent Finance? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
• My partner and myself have 50:50 shares in a buy to let. I am a top rate tax payer. Ideally I wish to complete a transfer of equity into her name to reduce our tax on rental income. Assuming Intelligent Finance are content with this the legal fees are not high. However what happens when we dispose of the property? Would my GGT relief be lost.
• Is there such a thing a transfer of equity stamp duty calculator?
• I co-own a property in Witham , with a Intelligent Finance mortgage with my ex partner. He and his new partner are going to buy me out. We had consent from Intelligent Finance to remove my name with hers. The transfer of equity has to be completed by a lawyer for Intelligent Finance (apparently). Is it possible for us to deal with the Land Registry change?

Questions that your conveyancing solicitor could ask in relation to your Intelligent Finance Transfer of Equity

General Advice to read in further to the above Intelligent Finance transfer of equity information :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy varies based on the market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your lawyer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.